Amazon Will Collect Minnesota Sales Tax, October 2014
- Sep 23, 2014 | Gail Cole
Last year, Amazon severed its relationship to Minnesota affiliates in order to avoid a sales tax obligation after the state passed an Amazon tax law. Now the company has announced it will begin collecting sales tax in Minnesota on October 1, 2014.
Although the online retailer does not at this time have a physical presence in the state (which would necessitate sales tax collection), it has said it “will be required” to collect sales tax next month. MPR News reports that Amazon “is considering various opportunities to expand in Minnesota.”
Still, an air of mystery surrounds the announcement. There are speculations that Amazon “is quietly building a distribution center from which to roll out same-day delivery in the Twin Cities,” or that it already has servers located in the state. Details are not forthcoming at this time; however, state revenue commissioner Myron Frans has confirmed that the company will collect tax on Minnesota sales: “We are pleased that they are planning to expand in Minnesota, and we would defer to Amazon any specific questions about the change or its plans.”
Amazon will also collect Maryland sales tax beginning October 1, 2014.
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